What factors should exporters consider in selecting an overseas market?

- Many products will only suit specific countries due to different values, customs,
languages, technical standards and currencies. There are some basic factors which
exporters should consider in selecting an overseas market and they are as follows:

 Nature and type of market: Any company should firstly consider what kind of
market it is entering for the expansion of business. Some businesses might find a
small market to be a useful way of slowly expanding into international markets,
while for others, only a large market could provide them with the potential to
realize their ambitions.
 Target market buying behaviors: It is vital that a company should know where
and how customers want to buy its products and services. Market research is the
key to answering these questions. During market research, demographic,
psychographic, geographic and behavioral characteristics are considered to
answer questions such as: where do customers in the target market buy similar
products and services? In stores? Online? From sales representatives? The
exporter must also consider the international sales and marketing plan and what
the organization wants to achieve in that specific market.
 Growth speed rate of new market: Another factor to consider is the speed at
which the market is growing. It is usually easier to take a share of an expanding
market than to fight for a share of a market that is already mature or declining.
The quality of competition in some markets may make entering these markets
difficult. Focusing on countries with fewer competitors might be more beneficial.
 Market location: The location of the target market, including proximity to the
export location, will influence the sales channels selected. Is it a neighboring
country accessible via a well-established road system or is it on the other side of
the globe? Can the market be accessed by established shipping, rail or trucking
routes? How long will it take to reach the market and restock supplies? What
types of sales channels are available in this location? The geography of the
target market, the distances between customers and the availability of different
types of sales channels in that location all affect sales channel decisions.
 Competition: The sales, marketing and pricing strategies used by competitors
can help organizations choose the best sales channels for their own products
and services. If it has worked for competitors with similar offerings, it can also
work for the organization. No matter whether the organization uses similar or
different channels, it will strive to deliver and distribute its products and services
as well as, or better than, the competition. It can gain competitive advantage by
making it easier for customers to access its products and services, and by
providing timely deliveries and low-priced shipping.